The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an act passed by the Indian Parliament that guarantees the right to work by augmenting livelihood security in India’s rural regions by giving a minimum of 100 days of work in one year. The wage employment is offered to all households from which an adult member volunteers for unskilled manual labour. MGNREGA plays a key role in offering economic security, bringing down rural-urban migration, protection of the environment, empowerment of rural women, encouraging social equity, etc.

Ever since the scheme was implemented, the number of jobs has increased by 240% in the past 10 years. The scheme has been successful in enhancing the bargaining power and overcome market exploitation. The scheme has also diminished wage volatility.